Study On The FDI’s Crowding-in And Crowding-out Effect Upon Domestic Investment In The Northwest Region Of China

Since the1960s, foreign direct investment (FDI) by multinational corporations led to the rapid pace of development is increasingly becoming a dominant force in the international economic transactions, an important factor to promote the economic growth of a country. Since the reform and opening up, China has actively attract foreign investment to develop a number of preferential policies for attracting investment, and to obtain significant results. With the continued development of China’s market economy and the continuous improvement of the investment environment, the introduction of foreign capital in China has been expanding, the structure has been constantly optimize quality constantly improve. However, FDI as exogenous variables in terms of the domestic economy, is always a double-edged sword", at the same time to promote China’s rapid economic growth, may also bring some negative impact on China’s domestic investment form a crowding-out effect.So far, domestic scholars mainly focused on the impact of FDI on economic growth in China, very few studies of the northwest region, with economic globalization and trade liberalization background, accompanied by large-scale development of the western region continued to deepen, and15Platform support, the problem of how to take advantage of the unique advantages of the northwest Territories, to accelerate the development of the local economy, and promote the coordinated development of China’s economy as a whole, is a great theoretical and practical significance.Northwest (Gansu, Shaanxi, Ningxia, Xinjiang, Qinghai) paper selected for the object, six chapters in length, so that the system, in-depth study of foreign direct investment (FDI) on domestic investment squeeze into the crowding-out effect. From the the article logical order, the first analysis of the Northwest Territories since the reform and opening up, the introduction of FDI in size, industry, distribution and origin of the status quo and change. Second, the the select1986-2011Northwest panel data, crowding out on the the Northwest Territories overall FDI on domestic investment squeeze into empirical research1986-1992,1993-1997,1997-2011three stages the squeezing effect of FDI discussed separately.